Retirement Retired Life

Here's How Much the Average Retiree Spends Per Month on Health Care

What retirees really spend each month on health care costs.

By Gianetta Palmer , Edited by Calista Headrick

Updated April 9, 2026

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A stress-free retirement means doing what you want, when you want, without the worry of a daily commute. After a lifetime of the daily grind, the last thing anyone wants to do is scrimp and save just to get by in their golden years.

For many retirees, health care costs, such as doctor visits and medicines, account for nearly 13% of their monthly budget, according to a new study from FinanceBuzz.

If you're approaching retirement age, here's how much of your budget could go to health care costs and why it's a smart decision to plan accordingly to help offset some of those costs.

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The annual cost of health care for retirees

FinanceBuzz analyzed data from the U.S. Bureau of Labor Statistics and found that the average retiree over 65 spends about $8,259 annually on health care. Broken down by month, that's $688.25, or roughly 13% of their monthly income.

Of course, these costs could be higher or lower depending on individual health care needs. In the next sections, we look at why retirees face such higher costs in retirement and ways to reduce them.

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Why might retirees face high health care costs in retirement?

One of the many reasons retirees face higher health care costs in retirement is the loss of employer-sponsored insurance when leaving the workforce. Even with programs like Medicare, out-of-pocket expenses such as premiums, deductibles, and uncovered services may increase costs. Employer-sponsored health coverage is a valuable benefit – and often a deciding factor when people choose where to work.

Medicare doesn't cover hearing aids

As we age, our bodies may need help keeping up, especially with our hearing and eyesight. According to the National Institute on Deafness and Other Communication Disorders (NIDCD), approximately one in three people aged 65 to 74 experiences hearing loss. Surprisingly, Original Medicare doesn't cover hearing aids, and with them typically costing up to $8,000 per pair, retirees may have to absorb the cost.

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Did you know if your air conditioner stops working, your homeowner’s insurance won’t cover it? Same with plumbing, electrical issues, appliances, and more.

Whether or not you’re a new homeowner, a home warranty from Choice Home Warranty could pick up the slack where insurance falls short and protect you against surprise expenses. If a covered system in your home breaks, you can call their hotline 24/7 to get it repaired.

For a limited time, you can get your first month free with a Single Payment home warranty plan.

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Routine dental care isn't covered

There's nothing worse than a toothache, except maybe the unexpected cost of a root canal or crown. Even with checkups, retirees never know when they'll need to see a dentist, and Medicare doesn't cover routine dental care, either. But there's good news. Many insurance companies offer affordable dental care or standalone plans that could offset the cost of an unexpected trip to the dentist.

Eyeglasses may be out-of-pocket, too

Your employer-sponsored insurance typically covers annual eye exam visits, but after retirement, you'll have to foot the bill yourself. Medicare doesn't cover routine visits, but things like cataract surgery and other necessary procedures may be covered. Look to places like Walmart Vision Center and other retailers who offer low up-front exam costs and 2-for-1 glasses.

Given that common necessities like these aren't covered, it may be time to get creative when it comes to saving on health care. Looking for some smart options to consider when it comes to health care costs? Here are some ideas to get you started.

Find a Medicare Advantage plan

After paying into Social Security and Medicare for over 40 years, you might expect your health care costs to be 100% covered in retirement. Original Medicare covers yearly wellness visits, but if your provider orders additional tests or procedures, you may have to pay the coinsurance and the Part B deductible.

A Medicare Advantage Plan may help lower your health care costs in retirement, especially if you choose a low- or $0-premium plan that bundles coverage like prescription drugs, dental, and vision. These plans also include a maximum out-of-pocket limit, which can help cap your annual spending. However, costs can vary depending on copays, provider networks, and plan rules, so it's important to compare options carefully. To enroll, you must be signed up for Medicare Parts A and B, which have separate premiums.

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Choose providers who accept Medicare

Not all medical providers and facilities accept Medicare, and choosing the wrong one could leave you paying more out of pocket. If you're approaching retirement age and are close to getting on Medicare, it might be a good idea to speak with your regular doctor about whether they accept it.

Medicare has negotiated rates on many services and will only pay that negotiated rate. If your provider doesn't accept Medicare, it's possible they may charge you a higher rate, and you may have to pay the difference.

Bottom line

We all hope we have saved enough for retirement, but there's no way to know for sure until the unexpected happens. Your budget won't be the same as your neighbor's, and your health care costs won't be either. One thing that may help you and your neighbor financially is to know the facts about Medicare and start planning now.

If you delay enrolling in Medicare Part B (medical insurance) or Part D (prescription drug coverage), you may face permanent late enrollment penalties that increase over time. Part B carries a 10% premium increase for each full 12-month period you delay, while Part D adds 1% of the national base premium for every month you go without coverage.

These penalties last for life, making early planning one of the smartest money moves for seniors looking to keep long-term health care costs as low as possible.

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